Burundi -- Economy
Burundi
is among Africa's
poorest countries,
and recent
violence and
mass displacements
of people
has devastated
an already
weak economy.
It's people
earn a very
low yearly
income and
it is poorly
developed.
Over
94% of Burundi's
population
lives in rural
areas; the
great majority
of people
are subsistence
farmers. Coffee
is the major
export and
foreign exchange
earner accounting
for over 80%
of exports.
Tea accounted
for less than
10%.
The
industrial
and manufacturing
sectors have
been hard
hit by political
turmoil. Most
manufacturing
revolves around
food production
and processing
and due to
mass displacements
of people
and war there
has been a
radical drop
in product
output. Burundi
does have
important
reserves of
vanadium,
uranium and
nickel. But
high transportation
costs have
limited the
potential
of these reserves.
Burundi's
brewery is
the largest
and most effective
industry and
it continues
to produce
and be profitable
no matter
the political
and social
turmoil.
Sanctions
imposed on
Burundi are
also adding
to its economic
woes. Before
the economy
has a chance
to recuperate,
Burundi needs
to have peace.
Economy
overview
Burundi
is a landlocked,
resource-poor
country in
an early stage
of economic
development.
The economy
is predominately
agricultural
with roughly
90% of the
population
dependent
on subsistence
agriculture.
Its economic
health depends
on the coffee
crop, which
accounts for
80% of foreign
exchange earnings.
The ability
to pay for
imports therefore
rests largely
on the vagaries
of the climate
and the international
coffee market.
As part of
its economic
reform agenda,
launched in
February 1991
with IMF and
World Bank
support, Burundi
is trying
to diversify
its agricultural
exports, attract
foreign investment
in industry,
and modernize
government
budgetary
practices.
Since October
1993 the nation
has suffered
from massive
ethnic-based
violence which
has resulted
in the death
of perhaps
100,000 persons
and the displacement
of a million
others. Foods,
medicines,
and electricity
remain in
short supply.
An impoverished
and disorganized
government
can hardly
implement
the needed
reform programs.
GDP:
purchasing
power parity$4
billion (1997
est.)
GDPreal
growth rate:
4.4% (1997
est.)
GDPper
capita:
purchasing
power parity$660
(1997 est.)
GDPcomposition
by sector:
agriculture:
56% industry:
18% services:
26% (1995
est.)
Inflation
rateconsumer
price index:
26% (1996
est.)
Labor force:
total:
1.9 million
by occupation:
agriculture
93.0%, government
4.0%, industry
and commerce
1.5%, services
1.5% (1983
est.)
Unemployment
rate:
NA
Budget:
revenues:
$222 million
expenditures:
$258 million,
including
capital expenditures
of $92 million
(1995 est.)
Industries:
light
consumer goods
such as blankets,
shoes, soap;
assembly of
imported components;
public works
construction;
food processing
Industrial
production
growth rate:
NA%
Agricultureproducts:
coffee, cotton,
tea, corn,
sorghum, sweet
potatoes,
bananas, manioc
(tapioca);
meat, milk,
hides
Exports:
total
value:
$40 million
(f.o.b., 1996)
commodities:
coffee 81%,
tea, cotton,
hides partners:
EU 60%, US
7%, Asia 1%
Imports:
total value:
$127 million
(c.i.f., 1996)
commodities:
capital
goods 26%,
petroleum
products,
foodstuffs,
consumer goods
partners:
EU 47%, Asia
25%, US 6%
Debtexternal:
$1.1 billion
(1995 est.)
Economic
aid: recipient:
ODA, $NA
Currency:
1 Burundi
franc (FBu)
= 100 centimes
Exchange
rates: Burundi
francs (FBu)
per US$1412.59
(January 1998),
352.35 (1997),
302.75 (1996),
249.76 (1995),
252.66 (1994),
242.78 (1993)
Source:
CIA World
Fact Book
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